May 13, 2009 - Posted by Clarissa Peterson
In other cases, homeowners facing unemployment or financial difficulties may no longer be able to afford payments and wish to sell their house. But if they cannot sell the house for enough to pay the full amount of the mortgage, the lender can refuse to allow the sale to take place.
Homeowners that are unable to make mortgage payments are often forced into bankruptcy -- but may still end up losing their home if they are unable to come to agreement with their mortgage lender.
Last month, the Senate rejected a bill sponsored by Senator Richard Durbin, D. Ill., that would have given bankruptcy judges the ability to rework defaulted home mortgages on family homes to an affordable value. The bill could have prevented up to 1.7 million mortgages from falling into foreclosure, according to estimates by the Center for Responsible Lending and the National Association of Consumer Bankruptcy Attorneys.
Categories: Housing & Lending
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